Ezel / Tax Rulings / TX
TX 9104L1099C01 Sales and/or Use Tax (State,Local,MTA) 1991-04-08

Were marketing leads sold to insurance agents, home remodelers, and similar customers taxable information services?

Short answer: Yes. Texas treated the marketing leads as taxable information services because the same information could be sold to multiple customers and therefore was not proprietary to one client.

Apply this to your situation

This page answers the general question as of 1991. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1991
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

A company sold marketing leads for insurance agents, home remodelers, and similar customers. The Comptroller classified those sales as taxable information services. The information was not proprietary to a specific client because the seller could sell the same information to other customers.

What this means for you

Calling a lead list client-specific did not make it proprietary when the underlying information remained reusable and marketable to others. The letter directed the seller to Rule 3.342(a)(2) and (d)(1).

Common questions

Were the marketing leads taxable? Yes, as information services.

Why were they not proprietary information? The same information could be sold to other customers.

What rule governed? Rule 3.342, specifically subsections (a)(2) and (d)(1).

Citations and references

  • 34 Tex. Admin. Code Rule 3.342(a)(2) — information-services definition referenced by the letter
  • 34 Tex. Admin. Code Rule 3.342(d)(1) — proprietary-information provision referenced by the letter

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

JOHN SHARP
Comptroller April 8, 1991

Dear ****:

Thank you for your letter dated March 15, 1991, concerning sales of
"marketing leads for insurance agents, home remodelers, etc."

Based on your description, your company is providing taxable information
services for its customers. The sale of marketing leads is not the sale of
information that is proprietary to a specific client if the same information
can be sold to other customers. Please review section (a)(2) and (d)(1) of
Rule 3.342 on information services.

This opinion is based upon the facts you presented. If there are
additional or different facts, this opinion may change.

Please feel free to contact me if you have any additional questions. You
may write me, call toll free 1-800-252-5555 from anywhere in the United States
or phone 512/463-4600.

Sincerely,
Julie Pesl
Tax Administration Division

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